The Rajasthan High Court in the case of Vinayak Plylam Marketing Vs Superintendent, Central Goods, and Service Tax and Ors. rendered tax authority to immediately unblock the GST ITC claimed inside the electronic credit ledger via applicant since the statutory time limits given in Rule 86A of the CGST Rules, 2017 has passed.
Advocate Prakul Khurana and Advocate Rahul Lakhwani, Counsels for the Petitioner submitted that Rule 86A(3) of the Central Goods and Services Tax Rules, 2017 furnished that the limitation levied on the ITC beneath rule 86(A) of the Central goods and service tax rules 2017 will seize so as to influence after the expiry of 1 year from the date of levy of these limitations.
The counsel towards the applicant depends on the judgment of the Karnataka High Court in the case of Aryan Tradelink vs. Union of India and the Judgment of Bombay High Court in the case of Advent India PE Advisors Private Limited Vs Union of India and Ors.
The division bench from the Chief justice and Justice Uma Shankar Vyas vide its order dated 15.12.2021 observed that Rules 86A(3) of the Central Goods and Services Tax Rules, 2017 furnish that the limitations levied beneath rule 86A of the Central Goods and Services Tax Rules, 2017 must be raised post-1-year expiry from the imposition date of the limitation. “Thus, the Hon’ble Bench directed the respondent to forthwith unblock the Input Tax Credit availed in the Electronic Credit Ledger by the Petitioner.”
